Oil prices fall by 2% despite escalating tensions in West Asia

Global crude oil prices slipped on Tuesday, retreating from recent highs even as geopolitical tensions in West Asia showed no signs of easing.

The international benchmark, Brent crude, dropped about 1.3 per cent to trade near $113 per barrel, while West Texas Intermediate (WTI) fell more sharply, losing over 2 per cent to hover around $104 per barrel.

The decline followed a strong rally in the previous session, with prices having climbed close to $114 per barrel amid fears of supply disruptions. Analysts attributed Tuesday’s dip to profit-booking by traders, even as the broader risk outlook remained elevated.

On the domestic front, crude oil futures on the Multi Commodity Exchange also edged lower, reflecting the global trend.

Tensions in the region have intensified following fresh exchanges between the United States and Iran, with the strategically vital Strait of Hormuz emerging as a focal point. The narrow passage, which handles a significant share of the world’s oil and gas shipments, has seen heightened military activity, fuelling concerns over potential disruptions to global energy supplies.

Reports of missile and drone attacks in the Gulf have added to uncertainty, raising fears that a fragile ceasefire could collapse. The situation has been further complicated by moves from US President Donald Trump to provide naval escorts for vessels navigating the region.

Meanwhile, the Indian rupee weakened further against the US dollar, opening lower and hovering near record levels. The currency’s movement reflects ongoing volatility in global markets, driven in part by the geopolitical situation and fluctuations in crude prices.

Market participants remain cautious, with experts warning that continued instability in the Hormuz region could keep oil prices volatile in the near term.

With IANS inputs